The current analysis contributes to the literature on real exchange rate effect of development aid by separating allocated trade sector (Aid for Trade – AfT) from other flows. empirical findings show that higher AfT flows lead a depreciation in recipient economies, while generate an appreciation rate. total works through openness, export product diversification, and inward foreign direct invest...

Purpose The relationship between real exchange rate and services export diversification is at the heart of this study. Design/methodology/approach analysis performed using a sample 113 countries over period 1985–2014, 2-step system Generalized Method Moments (GMM) approach. uses both Theil index Herfindahl–Hirschman concentration. Findings shows that full sample, effective appreciation induces ...